Most premiers sense more opportunity than threat in Mr Trudeau’s plan, seeing it as a chance to extract goodies from the federal government. Friendly collaboration is finished, says Tracy Snoddon of the C.D. Howe Institute, a think-tank. Now “a period of hard bargaining, posturing and demands for compensation and concessions begins.” Rachel Notley, Alberta’s premier, gave Mr Trudeau a taste of what is in store when she huffed that she would not support a national carbon price until she saw progress on plans for a pipeline to carry her province’s crude oil to one of Canada’s coasts. Quebec wants the federal government to give $1 billion to Bombardier, a struggling aircraft-maker. Other provinces have their own wish-lists.
The biggest prize, universally coveted, is more federal money for health care, the largest item in provinces’ budgets. To help pay for it, the federal government will this year give them C$36 billion, its biggest transfer. This has been growing by 6% a year since 2004. Mr Harper’s government decided that from 2017 the rate of growth would fall to that of nominal GDP, which is projected to average 3.8% over the next few years. (There is a floor of 3%.)
Let the haggling begin | The Economist